Tata Motors and Mahindra & Mahindra (M&M) on Tuesday said that they would challenge the Competition Commission of India's (CCI) order that imposed huge penalty on auto companies on Tuesday.

Mahindra & Mahindra (M&M) – the largest utility vehicle maker issued a statement on Bombay Stock Exchange (BSE) saying, "The company aggrieved by this order proposes to appeal against it before the appropriate forum."

Automobile manufacturer Tata Motors is eyeing to capture more market share in the compact sedan market, following the launch of its latest product "Zest", according to a top company official.

"Our market share is relatively small. We have the (compact sedan) Indigo in this segment. It is about six per cent. Now with this launch it (market share) will grow quite strongly", Tata Motors Ltd, President, Passenger Vehicle business unit, Ranjit Yadav told reporters here.

NEW DELHI: Carmakers such as Tata Motors, M&M, and Maruti Suzuki-0.62 % plunged up to 2 per cent in trade on Tuesday, after the Competition Commission of India imposed a combined penalty of over Rs 2,500 crore on 14 carmakers for indulging in unfair practices in the spare parts market.

Tata Motors-0.73 % faces the maximum fine of Rs 1,346 crore, followed by Maruti Suzuki Rs 471 crore, Mahindra & Mahindra Rs 292 crore, General Motors Rs 85 crore, Honda Car India Rs 78 crore.

NEW DELHI: Girish Wagh, the man behind Tata Motors' much-touted budget car Nano, has blamed "external factors" for the poor run of the vehicle, while also linking the failure to the last-minute withdrawal of the factory from Singur in West Bengal that led to delays in deliveries.

Wagh, the main architect of Nano, also feels that the tag of "cheapest car in the world" badly hit the chances of the model, which actually was meant to be a low-cost innovation.

Even as Tata Motors is looking to reinvent itself by launching some new models starting with compact sedan Zest and followed by two models every year till 2020, it would continue to retain its earlier passenger car models like Indica and Indigo, pinning hopes that early signs of an economic revival could revive sales in this category.

"There is no immediate plan to phase out either Indica or Indigo. In the passenger segment, we were a bit under-represented and Zest would start to address that category. But our other brands are very strong in the categories they are in. With economy turning around brands like Indigo and Indica would start growing and it is already happening.

Tata Motors has rallied 2% to Rs 495, also its record high on BSE, extending its rally on the bourses.

In past one week, the stock surged 14% from Rs 433 on August 8, after reporting a robust earnings for the quarter ended June 2014 on back of strong sales of luxury Jaguar and Land Rover (JLR). The benchmark S&P BSE Sensex gain 3.3% during the same period.

The profitability of the struggling domestic unit of Tata Motors, especially that of its passenger car division, depends on the success of the newly launched sedan Zest and the forthcoming roll out Bolt, says global rating agency Moody’s.

"The profitability of Tata Motors' passenger car business depends on its ability to sell significant volumes of its new Zest and Bolt models," Moody's said in a statement.

AHMEDABAD: Tata Nano, once a symbol of aspiration for two-wheeler owners, will be revamped next year and launched as a 'Smart City Car', Girish Wagh, senior vice-president, Tata Motors, said on August 13.

The car suffered from an image problem leading to lower sales.

Tata Motors on Tuesday ended its four-year product launch drought, launching the Zest, a compact sedan priced at Rs 4.64 lakh (ex-showroom, Delhi). The car, the cheapest in its category, will compete against the Maruti Suzuki Dzire, the Honda Amaze, the Hyundai Xcent and the Tata Motors Indigo CS.

Tata Motors claims the Zest is loaded with 29 “segment-leading” features and will be available in nine variants across petrol and diesel engines. Tata Motors’ first new model launch after the Aria launch in 2010, the Zest sports a new 1.2-litre gasoline engine from the Revotron family. (DRIVING ZEST INTO MARKETS).

Shares of Tata Motors soared over 8 per cent in morning trade after the company reported over 3-fold jump in consolidated net profit for the June quarter.

The auto major's scrip jumped 8.18 per cent to Rs 484.00 on the BSE.

On the NSE, the stock climbed 7.93 per cent to Rs 482.

Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.